FxWirePro: EUR/JPY finds strong support at 200-DMA, weakness likely on break below

• EUR/JPY rejected at 100-DMA, slips lower from 133 handle after failing to extend gains above.
   
• Series of mixed Euro area PMI releases capped the EUR recovery and triggered fresh selling interest.
   
• Monetary policy divergence back in play ahead of the European Central Bank (ECB) policy decision due later this Thursday.
   
• The pair is extending sideways, finds strong support at 200-DMA (132.25), we see weakness on break below.
   
• Technical indicators do not show clear directional bias. RSI flat, but holds above 50 levels.
   
• Price action capped between 100 and 200 DMAs. Breakout on either side could determine further direction.
   
• Break above 100-DMA finds next major resistance at cloud top at 133.42. Break above cloud will propel the pair higher.
   
• On the downside, immediate support aligns at 200-DMA at 132.25. Violation at 200-DMA will see drag till major trendline support at 130.20 ahead of 38.2% Fib at 128.85.

Support levels - 132.25 (200-DMA), 131.50 (cloud base), 130.80 (Apr 12 low)

Resistance levels - 132.43 (5-DMA), 133.01 (100-DMA), 133.42 (Cloud top), 134.40 (trendline)

Recommendation: We prefer to wait for clear directional bias.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest